Wanted to get your thoughts on what to do with an extra $500 per month. I am trying to decide whether to pay off our mortgage or fund my boy's 529 plans. I presently max out my work 401(k) and both of our Roth IRAs. I am in the 25% tax bracket with a healthy emergency savings account. I have two boys, 4 and 7 years old, who both have an underfunded 529 plan in their name.
Refinanced to a 15 year mortgage -$203K at 2.875% last fall. Given this, we will still have a mortgage payment while my first one is in school. I came across this post
from a few years ago but the numbers where a lot different -a much higher interest rate over 30 years versus 15. So should I apply the extra $500 to the mortgage, the 529 plan or some combination of the two?
So, fellow Bogleheads, what say you?
Thank you in advance,